# VAT

/ˈvæt/ (US) · /vˈæt/ (UK)

Source: https://englishreference.com/word/vat
Updated: 2026-08-08

## Senses

### 1. tax

noun · CEFR B2 · British English

Stands for Value Added Tax. A type of tax you pay when you buy goods or services.

For teachers: Abbreviation for Value Added Tax. An indirect tax on the consumption of goods and services, usually collected at each stage of the supply chain.

- The price of the new laptop includes VAT at the standard rate.
- Small business owners must register for VAT once their annual turnover exceeds the specific threshold set by the government.

Usage: Usually written in capital letters; often used as an uncountable noun.

Teaching tip: While 'VAT' is the standard term in the UK and EU, American English speakers typically use 'sales tax' for a similar concept.

### 2. large container

noun · CEFR C1 · Technical

a very large tank or tub used for holding or mixing liquids, especially in a factory.

For teachers: a large vessel, cistern, or tub used for holding, mixing, or storing liquids during industrial processes like brewing or tanning.

- The wine was aged in a giant oak vat for several months.
- Workers monitored the temperature of the chemical vat to ensure the dye bonded correctly with the fabric.

Usage: Often used in the context of brewing, winemaking, or chemical manufacturing.

### 3. to store in a tank

verb · CEFR C2 · Technical · Formal

to put or store a liquid in a large industrial container.

For teachers: to place or treat a liquid within a large industrial vessel, often for the purpose of blending or aging.

- The distillery will vat the whiskey before it is bottled for sale.
- The master blender decided to vat the different vintages together to achieve a more consistent flavor profile.

## Examples

- The price of the laptop includes VAT.
- Small business owners must register for VAT once their annual turnover exceeds a specific financial threshold set by the government.
- While some essential items like basic groceries are exempt, most luxury goods carry the full standard rate of VAT, significantly affecting the final retail price paid by the consumer.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.